The dollar index surged to a 13-month high and gold prices tumbled on Thursday, driven by the Federal Reserve's hawkish stance projecting higher interest rates later this year. The dollar index rose 0.80%, while August COMEX gold settled down $135.50, or 3.09%, and July silver dropped 4.448, or 6.29%. Swaps markets are discounting a 36% chance of a 25 basis point rate hike at the next FOMC meeting on July 28-29. The euro fell to a 2.5-month low, and the yen hit a 23-month low against the dollar, with intervention risks rising as the yen breached 160 per dollar. Precious metals also faced pressure from reduced safe-haven demand after President Trump signed a preliminary deal to end the Middle East war, sparking an equity rally.